Problem
Omega company will pay a dividend of kshs 4 per share at the end of year one. the dividend is expected to grow at a constant rate of 5 % per annum. the current price per share is kshs 90, par value per share is kshs 25. calculate (i) the required rate of return (ii) the percentage change in price if the required rate of return remains constant, but the estimated growth rate increases to 6.5 % per annum.